Just 3% of companies in world's top business hubs have green skills needed to transition
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Executives said the leading benefit of increasing green skills in their workforces is improved brand reputation (86%), followed by resilience against extreme weather events (81.7%), and greater ability to achieve sustainability goals (77%).
The research by Economist Impact provides the very latest data and insights on corporate attitudes towards green skills and the future green workforce, shedding light on one of the most challenging aspects of creating a green economy.
Government regulations and policies were revealed as the leading influence for companies to adopt more green skills in their workforces, stated by the majority (80%) of the executives surveyed.
However the research reveals a disconnect between executives' intentions and action: Executives see the importance of green skills but say the level of financial investment required is the top reason holding them back. Lack of endorsement from senior leadership and lack of clarity over what constitutes green skills ranked as the second and third biggest obstacles.
"Cities are both laboratories of innovation and essential forces in the green transition. In partnerships with companies, they can make sure the green-skills revolution has the wind at its back", says Andrew Staples, editorial director, Impact Initiatives & Alliances and Head of Policy & Insights (Asia), Economist Impact, but "We are still in the early laps of this race. Although the pace is likely to pick up, concerns remain that this may not happen quickly enough to forestall the worst consequences."
Research finds that if the lack of green skill development is not addressed, the delivery of corporate net zero targets will falter. A critical shortage of workers in the green economy may rise to seven million by 2030[1]. In Europe alone, achieving the continent's net zero commitments by 2050 will require the retraining of 18 million people[2].
Given that smaller companies may have fewer resources, they are placing less emphasis on green skills than their larger counterparts. Nearly a quarter (22.9%) of executives from organisations with less than 250 employees say they do not incentivise their employees to adopt or develop green skills. Comparably, in companies with over a workforce of over 25,000 people, this figure drops to zero.
About the research
"A green edge: green skills for the future" is an Economist Impact report, sponsored by Kyocera Document Solutions. The report accompanies a barometer that assesses the environment for green-skills development and adoption in six cities—Berlin, London, New York, Singapore, Sydney and Tokyo—via a survey of 300 executives. Expert interviews and an extensive literature review supplemented the survey findings. The purpose of the barometer is to study the green-skills ecosystem in the six cities of focus. It allows us to explore the drivers behind green-skills adoption as well as analyse businesses' readiness and efforts to adopt green skills.
[1] https://www.bcg.com/publications/2023/will-a-green-skills-gap-put-climate-goals-at-risk
[2] https://www.weforum.org/agenda/2023/05/europe-green-skills-solar-wind/
About Economist Impact
Economist Impact combines the rigour of a think-tank with the creativity of a media brand to engage a globally influential audience. We believe that evidence-based insights can open debate, broaden perspectives and catalyse progress. The services offered by Economist Impact previously existed within The Economist Group as separate entities, including EIU Thought Leadership, EIU Public Policy, EIU Health Policy, Economist Events, EBrandConnect and SignalNoise. We are building on a 75-year track record of analysis across 205 countries. Along with framework design, benchmarking, economic and social impact analysis, forecasting and scenario modelling, we provide creative storytelling, events expertise, design-thinking solutions and market-leading media products, making Economist Impact uniquely positioned to deliver measurable outcomes to our clients.
About Kyocera Document Solutions Inc
Kyocera Document Solutions Inc. is a global leading provider of total document solutions based in Osaka, Japan. The company's portfolio includes reliable and eco-friendly MFPs and printers, as well as business applications and consultative services which enable customers to optimise and manage their document workflow, reaching new heights of efficiency. With professional expertise and a culture of empathetic partnership, the objective of the company is to help organisations put knowledge to work to drive change.
Kyocera Document Solutions Inc. is a group company of Kyocera Corporation (Kyocera), a leading supplier of semiconductor packages, industrial and automotive components, semiconductor packages, electronic devices, smart energy systems, printers, copiers, and mobile phones. During the year ended March 31, 2023, the Kyocera Group's consolidated sales revenue totalled 2 trillion yen (approx. US$15.1 billion). Kyocera is ranked #672 on Forbes magazine's 2023 "Global 2000" list of the world's largest publicly traded companies, and has been named by The Wall Street Journal among "The World's 100 Most Sustainably Managed Companies."
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